As part of my monitoring process, I review the list of dividend increases every week. This exercise is helpful in monitoring the progress for existing holdings in my dividend growth portfolio. It is also a helpful exercise to uncover hidden gems for further research.
I like to review the press releases, and see if I can see something that jumps at me. The tone of press releases, the rate of change in dividends, when compared to historical averages and growth in fundamentals, gives me a very decent approximation if management is bluffing or is simply staying the course.
I usually focus on the companies that have managed to increase dividends for at least a decade. During the past week, the following companies raised dividends for their shareholders:
Lockheed Martin Corporation (LMT) is a security and aerospace company, engages in the research, design, development, manufacture, integration, and sustainment of technology systems, products, and services worldwide. It operates through four segments: Aeronautics, Missiles and Fire Control, Rotary and Mission Systems, and Space Systems.
Lockheed Martin raised its quarterly dividend by 8.30% to $2.60/share. This marked the 18th consecutive annual dividend increase for this dividend achiever. During the past decade, the company has managed to grow distributions at an annualized rate of 14.40%.
Between 2010 and 2019, Lockheed Martin managed to grow earnings from $7.81/share to $21.95/share. Lockheed is expected to earn $24.17/share in 2020.
The stock is attractively valued at 16 times forward earnings. Lockheed Martin yields 2.70%.
Artesian Resources Corporation (ARTNA) provides water, wastewater, and other services on the Delmarva Peninsula.
Artesian Resources increased its quarterly dividend by 3% to 25.71 cents/share. This dividend champion company has increased dividends for 28 years in a row. The company has managed to grow distributions at an annualized rate of 3.10% during the past decade.
The company managed to grow earnings from $1/share in 2010 to $1.60/share in 2019. Artesian Resources is expected to generate $1.68/share in 2020.
The stock is selling for 20.10 times forward earnings and yields 3.05%.
Honeywell International Inc. (HON) operates as a diversified technology and manufacturing company worldwide.
The company increased its quarterly dividend by 3.30% to 93 cents/share. This marked the 11th consecutive annual dividend increase for this dividend achiever. Honeywell has managed to grow annual distributions at an annualized rate of 10.75% during the past decade.
The company grew earnings from $2.59/share in 2010 to $8.41/share in 2019. Honeywell is expected to earn $6.87/share in 2020.
The stock is selling for 23.50 times forward earnings and yields 2.30%.
The First of Long Island Corporation (FLIC) operates as the holding company for The First National Bank of Long Island that provides financial services to small and medium-sized businesses, professionals, consumers, municipalities, and other organizations.
The company increased its quarterly dividend by 5.60% to 19 cents/share. This marked the 25th consecutive annual dividend increase for this newly minted dividend champion. Over the past decade, this dividend champion has managed to grow distributions at an annualized rate of 7.70%.
The company managed to increase earnings from $1.02/share in 2010 to $1.67/share in 2019.
The stock trades at 8.40 times forward earnings and yields 5.25%.
Accenture plc (ACN) provides consulting, technology, and outsourcing services worldwide. Accenture raised its quarterly dividend by 10% to 88 cents/share. This marked the 16th consecutive annual dividend increase for this dividend achiever. Accenture has managed to grow dividends at an annualized rate of 14.80% during the past decade.
The company managed to increase earnings from $2.66/share in 2010 to $7.36/share in 2019. Accenture is expected to generate $8.04/share in 2020.
The stock sells for 26.70 times forward earnings and yields 1.65%.
Bank of South Carolina Corporation (BKSC) operates as the holding company for The Bank of South Carolina that provides commercial banking services to individuals, professionals, and small and middle market businesses in South Carolina.
The company hiked its quarterly dividend by 6.25% to 17 cents/share. This marked the 10th consecutive annual dividend increase for this dividend contender. During the past decade, it has managed to grow distributions at an annualized rate of 5.70%.
The company managed to increase earnings from 58 cents/share in 2010 to $1.31/share in 2019. The stock sells for 13.50 times earnings and yields 4.20%.
Hingham Institution for Savings (HIFS) provides various banking products and services to individuals and small businesses in the United States.
The bank increased its quarterly dividend by 4.35% to 45 cents/share. The new dividend rate is 12.50% higher than the rate paid during the same time last year. The bank has consistently increased regular quarterly cash dividends over the last twenty-five years. The Bank has also declared special cash dividends in each of the last twenty-five years, typically in the fourth quarter. Over the past decade, it has managed to grow dividends at an annualized rate of 6.10%.
The company increased earnings from $4.81/share in 2010 to $17.83/share in 2019. The stock sells for 10.30 times earnings and yields 1%.
Fortis Inc. (FTS) operates as an electric and gas utility company in Canada, the United States, and the Caribbean countries.
The utility raised its quarterly dividend by 5.90% to 50.50 cents/share. This marked the 47th consecutive year of annual dividend increases for this Canadian dividend aristocrat. Over the past decade, Fortis has managed to grow dividends at an annualized rate of 5.80%. In addition, the Corporation has extended its targeted average annual dividend per common share growth of approximately 6% to 2025 based on a 2020 annualized dividend of $1.91. Just for reference, the stock data is listed in Canadian Dollars, not US dollars.
Between 2009 and 2019, Fortis has managed to grow earnings from $1.51/share to $2.67/share. The company is expected to generate $2.58/share in 2020.
The stock trades at 20.84 times forward earnings and yields 3.75%.